Karakartal

Ownership:: 50% Alacer Gold, 50% Lidya Mining
Location:: 115 km southwest of Erzincan, Turkey

Deposit Type:: Cu-Au Porphyry
Current Resources:: Indicated = 13.8Mt at 0.5g/t Au, 0.29% Cu; Inferred = 17.8Mt at 0.3g/t Au, 0.22% Cu
(100% basis)

Karakartal is a 50/50 joint venture with our Turkish partners Lydia Maden İşletmelerş A.Ş. Alacer Gold is the operator of the project.

Karakartal is located roughly 550 km east of Ankara, Turkey. The project is 115 km by road from Erzincan, Turkey and about 15 km south-southeast from the town of ĺliҫ (population 2,500). Karakartal is roughly 10 km from by road from the Çöpler mine.

Alacer Gold picked up the Karakartal tenements in 1998 and conducted a targeting exercise, culminating in an initial eight-hole diamond drill program in 2001. This work was followed up in 2008 with a campaign involving 22 holes for a total of nearly 7,800m of diamond drilling. The information from these drilling programs was used to estimate an initial mineral resource for Karakartal.

Karakartal is a copper-gold porphyry system hosted in variably altered diorite that has intruded a sequence of carbonates and metasedimentary units. Copper mineralization as primary sulphides is seen as chalcopyrite with rare secondary covellite and chalcosite. Oxide copper is malachite, with azurite and neotocite. The copper mineralization is commonly developed as part of a weak quartz stockwork with the quartz veins being less than 1cm in width. The best copper mineralization is associated with the potassic alteration zone.

Alacer Gold recommenced exploration drilling at Karakartal in late 2011.